EUSA Ninth Biennial International Conference
JUDICIALLY CRAFTED FEDERALISM: EU AND USA
Mary L. Volcansek
Texas Christian University
The designation "United States of America" appears to have used for the first time in
1776, in the closing paragraph of the Declaration of Independence issued by the Continental
Congress. Almost two centuries later, in 1948, Winston Churchill applied a similar assignation,
"the United States of Europe," to capture one vision of a future face for Western Europe. The
first was a declaration, and the second, a statement of inspiration. As the European Community
(EC) evolved into the European Union (EU), parallels between it and the United States have been
sought. In this essay, I follow in that line by considering how federalism, as a concept and as a
reality, has been molded in the hands of judges. The trajectories of federalism may, however,
explain more about how courts consolidate and wield their power than about center and
periphery relations. Even so, the evolution of federalism, which carries different connotations in
Europe and the U.S., bears the clear fingerprints of judges.
Several competing explanations are typically offered to explain how or why court
decisions that mold public policy are reached. The legal argument follows some variation on
mechanical jurisprudence and rests on the premises that judges are objective and that the law is a
closed system. Hence, Rules x Facts = Decision (Frank, 1949: 14). The attitudinal model
relegates law qua law to the background and moves the judges' policy preferences or ideologies
to the foreground (Segal and Spaeth, 1993). Strategic choice theory negates neither, but proposes
that judges act strategically in their decisions to maximize their impact, whether on law or on
policy, within their own structure and in relation to other institutions (Epstein and Knight, 1998).
What likely motivates judges is some combination of all three, or as Gibson suggested, decisions
of judges are "a function of what they prefer to do, tempered by what they think they ought to do,
but constrained by what they perceive as feasible to do" (Gibson, 1983: 9). Decisions are, in
other words, the result of preferences, legal parameters and the political and social environment.
The European Court of Justice (ECJ) and the U.S. Supreme Court are institutions composed of
shifting personnel and linked to the past by a history of their own jurisprudence. I propose in this
paper to trace how federalism has been crafted by judges, but also how judicial institutions
evolve in relation to other institutions and political forces.
The very terms used to describe a political arrangement that is neither a confederation nor
a single centralized authority often lack clear and agreed upon meanings, as David O'Brien
explores in detail in his chapter in this volume. The confusion that exists today was found also in
1786. Indeed, much debate in the early days of the Constitutional Convention in Philadelphia
were consumed by attempts to define precisely what was meant by a "federal" system. Historical
examples from Chalemagne to the Helvetian confederation were not helpful, because central
governments within them were weaker than that proposed for the new United States of America.
Yet, the power that would reside within the constituent parts was significantly greater than local
entities could claim under any centralized arrangement. Indeed, long after the convention ended,
James Madison was writing letters still attempting to explain how the proposed configuration of
political power could not aptly be described as either. "Will you pardon me for pointing out an
error of fact into which you have fallen, as others have done, by supposing that the term national
applied to the contemplated Government," Madison began to Andrew Stevenson. "The term was
used, not in contradistinction to a limited, but to a federal government . . . . And there being no
technical or appropriate denomination applicable to the new and unique system, the term national
was used, with a confidence that it would be not be taken in a wrong sense . . . ." (Farrand, 1966:
III, 473). In another letter, written to N.P. Trist in 1831, Madison may have touched upon the
most distinguishing element of the new design. He first argued that "national" was not chosen
because it implied that all powers were consolidated in a central government, but added that the
new arrangement should also not be confused with a confederation of the kind that preceded the
constitution of 1787. The crucial distinguishing feature was that "the powers to be vested in the
new Govt. were to operate as in a Natl. Govt. directly on the people and not as in the Old
Confedcy. on the States only" (Farrand, 1966: III, 517).
In Europe in the nineteenth century, political will was toward national systems, wherein
power was consolidated centrally, and only the Swiss confederation of 1848 deviated from that
tendency. Though national governments in Europe were the norm, federal ideas were prevalent in
the early years of the twentieth century, particularly between the wars. Jean Monnet and Altiero
Spinelli were, during the 1940s and 1950s, clearly influenced by federalist ideas, and their
inclination is evident in the treaties that founded the EU (Close, 2000: 45).
Both the U.S. Constitution and the early treaties on which the EC was based reflected a
desire to create something not quite centralized, but more than confederated. The results are
federal systems, with varying degrees of state autonomy versus centralized power in different
eras. The U.S. Supreme Court and the European Court of Justice (ECJ) did not direct the course
of federation alone, for the executives, legislators, administrators and other judges at both state
and central levels were also active in channeling or limiting the extent of centralization. The
judges, even so, set parameters and goals to be attained; they provided the frame that demarcated
what could and could not be painted on the canvases by actors at the national, supranational or
state level. In the European case, many of those judicial pronouncements were ultimately
codified in the EU Constitutional Treaty drafted in 2003.
The sagas of judicial intervention are by now well-known by students of U.S.
constitutional development and those of European integration, but usually one, not both, of those
stories is told. This paper links the two in order to discern both familiar patterns and divergent
tendencies in the forces driving each judicial expansion and contraction.
Federalism and Integration
The greatest barrier to discussions of federalism is "a lack of conceptual clarity"
(Wildavsky, 1967: vii). Madison was at pains to describe the original U.S. version, and
European scholars and politicians have been equally challenged in their efforts to define what
federal Europe is or is not. Daniel Elazar provides what is the most generic and, therefore, least
controversial definition of federalism: "the mode of political organization that unites separate
polities within an overarching political system by distributing power among general and
constituent governments in a manner designed to protect the existence and authority of both"
(1984: 2). That division of power drives negotiations and yet links the two competing entities; it
is, in essence, a description of a partnership.
The term "federalism" is nowhere to be found in the U.S. Constitution, but rather it is
derived from a juxtaposition of the enumeration of national powers in Articles I, II and III with
the reserved powers of Amendment X and moderated by the supremacy clause of Article VI.
The last of those provisions makes explicit that the national constitution and laws trump any
other: "This Constitution, and the Laws of the United States which shall be made in Pursuance
thereof; all Treaties made, or which shall be made, under the Authority of the United States, shall
be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing
in the Constitution or Laws of an State to the Contrary notwithstanding." In light of state
rivalries and jealousies to preserve powers at the time of union, the inclusion of that statement is
striking, but subsequent history has proved that it was essential to the future of the polity. The
ratification process clarified that the goal of the system should be attainment of an equilibrium
between the states and the national government, with some powers exercised concurrently and
with a division of sovereignty between states and the national government (Federalist No. 32).
A declaration parallel to the U.S. supremacy clause was included in the draft EU
Constitutional Treaty. Article 10 states that "the Constitution and law adopted by the Union's
Institutions in exercising competences conferred on it, shall have primacy over the law of the
Member States." The following section instructs all Member states to take "all appropriate
measures . . . to ensure fulfillment of the obligations flowing from the constitution or resulting
from the Union Institutions' acts."
Some architects of the early efforts toward European federalism clearly had a model
similar to that of the United States in mind, and Robert Schumann even referred to the Treaty of
Paris that established the European Coal and Steel Community (ECSC) as a first step in "laying
the foundation for a European federation" (Close, 2000: 107). Because of the connotation that
"federalism" in Europe carries, most proponents of the ECSC and the later European Community
Treaty in 1957 eschewed use of the term. They chose instead to speak of "integration," of
functional integration of economic sectors. Indeed, the descriptors devised for the European
experiment include "supranational," "functional integration," and "intergovernmentalism"
(Rosamond, 2000). "Federalism" is too politically charge and deemed both convenient and
dangerous, ideological and analytical; it has become "an elastic and controversial concept in the
politics of European integration" (Rosamond, 2000: 24). Indeed, the EU Constitutional Treaty
settled on a novel descriptioin, "the principle of loyal cooperation," to regulated relations
between the Union and the Member States. The elasticity of the term federalism permits,
however, the suggestion that a form of it has been crafted in Europe as well as in the U.S.
The term that least threatened national sovereignty at the founding of the ECSC was
international organization. An international organization consists only of states, and the locus of
sovereignty is not in doubt. Sovereignty extended to both domestic and international
independence. In this sense, international organizations are, at least according to Peter Hay,
closely akin to if not identical to confederations (Hay, 1966: 21). They cannot act directly on
citizens of sovereign states and can achieve compliance with their mandates only through
international legal mechanisms or by force. The founders of the European Coal and Steel
Community had adopted, however, as early as 1949 the nomenclature of "supranational," and
that term is found in the Treaty of Paris. The key elements of a supranational institution include
its independence from its constituent parts, its authority to make decisions that bind its member
states and its ability to act on both states and on individuals within states (Hay, 1966: 33-34).
Obviously, a supranational body is distinctive from an international organization, but is it
federal? Ernst Haas answered that "federal," "central" and "supranational" could be treated as
synonymous since all described "activities, organizations and loyalties transcending the existing
nations, even though in a strict constitutional sense there are no clear 'federal' powers" (Haas,
1958: 9). He preferred to use "economic integration" instead to describe the first linking of six
nations and the European Community, and he defined it as nothing more elaborate than forging
economic links among countries; he countenanced the possibility, though, of using integration in
economic sectors as a vehicle for eventual political integration. Thus, the EU and the USA each
have a form of federalism, but the balance within each of these dual systems shifts and changes
with new conditions.
On both sides of the Atlantic, the process of integration proceeded at different rates at
over time. The meaning of American federalism was not settled with constitutional ratification
(O'Brien, 1997: 595), and the EU's evolution has proved to be even more fluid as each new
treaty attempts to remedy perceived flaws of earlier ones and accommodate new or anticipated
conditions. The recent European Constitutional Treaty attempted a clarification, by instituting, in
Article 5 the principle of "loyal cooperation," which requires that the Union and the Member
States "shall, in full mutual respect, assist each other in carrying out tasks which flow from the
Constitution." There were, even absent the new EU Constitution's prescription, clear similarities
at least in the judicial blush that has colored each version of federation. The U.S. experience
spans more than two centuries and the European one is only one-quarter that, but analogous
tendencies, particularly within the high courts, are discernible in the directions and degrees of
federalization.
Foundational Era
Neither the United States Supreme Court nor the European Court of Justice received any
notable litigation in their earliest days and, indeed, were regarded as somewhat peripheral to the
newly formed systems of governance. Both seized opportunities, nonetheless, to assert the
primacy of their respective national or supranational entities over the constituent parts and,
thereby, also to consolidate their own institutional place. Chisholm v. Georgia (1793) marked
the first foray of the Supreme Court into the field of federalism, and the Court first confronted
the question of state sovereignty: can a citizen of one state could sue another state? The Court
said "yes." This case is particularly relevant, since it also highlights the limits of judicial power
and how other institutions can prevail against judicial pronouncements. The Eleventh
Amendment establishing state sovereign immunity was passed in 1798 specifically to reverse the
result of the Chisholm case.
The Supreme Court decided a series of cases in the early nineteenth century that formed
the foundation for a strong central government thereafter. Marbury v. Madison (1803),
McColloch v. Maryland (1819) and Gibbons v. Ogden (1824) constituted the three legs on which
the U.S. national government could rest its authority. The first firmly established the supremacy
of the Supreme Court and articulated the power of judicial review; the second declared the
supremacy of the national constitution and national laws, when appropriately enacted, over those
of the states; and the third elaborated a comprehensive definition of commerce as "commercial
intercourse between nations, and parts of nations, in all its branches, and is regulated by
prescribing rules for carrying on that commerce," and claimed, thereby, a far-reaching power for
the national Congress to control economic transactions among the states and with foreign
nations. This trilogy of cases declared the supremacy of the national government, so long as it
acted within its proper sphere, over that of the states.
The European Court of Justice chose to strike a similar centralizing theme in a quartet of
cases early in its existence. The U.S. Constitution had embodied the concept that distinguished it
clearly from earlier confederations by providing that the national government could act directly
on citizens and not merely on states. The term for that arrangement in European parlance would
be "direct effect," and its presence in the European legal order would clearly differentiate the EC
from international organizations or confederations. Rejecting a literal reading of Article 12 of
the 1957 Treaty of Rome, the ECJ gave an expansive interpretation in its 1963 decision in Van
Gend en Loos and declared that "The Community . . . constitutes a new legal order of
international law for the benefit of which the states have limited their sovereign rights, albeit
within limited fields, and the subjects of which comprise not only Member States but also their
nationals." The ECJ further declared in Van Gend en Loos, that the treaties imposed obligations
on individuals, but also simultaneously conferred rights upon them. This has been hailed as the
first step in the Court's "constitutionalizing" the treaties. The ECJ then expanded the reach of
lower order Community laws to trump those of the Member States by allowing individuals to
invoke the authority of Community norms in national Courts (Costa v. E.N.E.L, 1964) and
providing for direct applicability of regulations and sometimes directives (Van Duyn v. Home
Office, 1974).
In a parallel to McCulloch v. Maryland, the ECJ also declared the supremacy of
supranational law in Costa v. E.N.E.L. The Court explained that, consistent with the spirit of the
treaties, Member States had through the treaties accepted "a permanent limitation of their
sovereign rights" and thereby Community laws "take precedence in, the legal order applicable in
the territory of each of the Member States [and] also preclude the valid adoption of new national
legislative measures to the extent to which they would be incompatible with Community
provisions" (Costa v. E.N.E.L., 1964). The Court established, thereby, a ground for judicial
review of domestic laws by national courts and in the 1977 Simmenthal case the power of
judicial review and the supremacy of the treaties was also extended to national constitutions
(Dehousse, 1998: 43).
The U.S. case of Gibbons v. Ogden carved out what Europeans call the "positive
commerce clause by declaring the authority of the central government to have sole authority to
make regulations for interstate commerce. The ERTA Case (Commission v. Council, 1971)
accomplished the same result in Europe be declaring that "when such common rules come into
being, the Community alone" can act. If there is positive commercial integration, then there
remains the question of a "negative" commerce clause or integration. In Europe, prohibitions on
negatively affecting the free movement of goods derive from several treaty articles and proscribe
tariffs, duties, discriminatory taxes and other barriers to intra-community/union trade.
The U.S. Supreme Court and the Court of Justice each managed, in the short interval of
less than two decades, to assert that the constitution or treaties were supreme over state or
national laws, even state or national constitutions, and had direct effect on citizens, not just on
states. A significant difference did, however, emerge. The European treaties that formed "the
constitution" of the EC or EU were largely restricted the economic issues, unlike the clear
political union in the U.S. Hence, the EU has been said to possess an "economic constitution"
(Maduro, 1998).
Mutations of Jurisdictions
Joseph Weiler labeled the second era of European integration that of "mutation of
jurisdiction and competencies" (1999: 39), which also aptly describes the second phase of
American federal evolution. There are a number of constitutional provisions that served as
vehicles for the Supreme Court, but this discussion will rely only on commerce clause
interpretations. The United States entered an era near the end of the nineteenth century that was
more attuned to the rights or prerogatives of states. The twentieth century witnessed a distinct
mutation that altered jurisdictions and competencies. Extreme assertions of state powers were
laid to rest by the Civil War of the 1860s, but the balance between the authority of the national
government and that of the states still tilted toward the latter. The period from 1895 to 1937 in
the United States has been labeled "dual federalism," which intends to say that the states and the
national governments have distinct jurisdictions and possibly even antagonistic interests; each is
viewed as supreme within its own sphere, without overlapping or cooperative competencies. The
national government first tested the limit of the commerce clause during this era and discovered
that the Supreme Court was inclined to read the constitution rather narrowly and, indeed, to step
back from the sweeping field defined in Gibbons v. Ogden.
The Sherman Anti-Trust Act, passed in 1890 under the guise of the commerce clause,
was designed to break up collusive or monopolistic concentrations. The Supreme Court read the
commerce clause in the E.C. Knight case (1895) as incapable of extending congressional power
to regulate to manufacturing, mining, agriculture or any form of production, activities that were
said to precede commerce. The Court similarly prevented Congress from using the commerce
clause to establish "unreasonable" regulations (Standard Oil v. U.S., 1911 and U.S. v. American
Tobacco, 1911) or to prohibit products manufactured with the use of child labor from entering
interstate commerce (Hammer v. Dagenhart, 1918). While the U.S. Supreme Court was
narrowly defining the national government's power to regulate commercial enterprises through
the commerce clause, it was interestingly upholding use of the commerce clause to promote
social policies. Central government legislation to prohibit interstate transportation of lottery
tickets (Champion v. Ames, 1903), stolen automobiles (Brooks v. U.S., 1925), impure good and
drugs (Hippolite Egg Co. V. U.S., 1911) and women for immoral purposes (Hoke v. U.S., 1913)
were, during the same period, validated by the Supreme Court as legitimate applications of the
commerce clause. The Supreme Court's treatment of national and state relations during the era
of dual federalism was, in other words, not wholly unidirectional. Only when laissez faire
economic theories were offended by national interference did the Court rebuke the central
government.
The Supreme Court, in the 1930s, tightened even more dramatically its interpretation of
the reach of central government power and the commerce clause. Whole sectors of New Deal
legislation were declared unconstitutional as exceeding the powers authorized by the
constitution. The National Industrial Recovery Act that aimed at controlling detrimental
competition was declared unconstitutional in part and in essence in Panama Refining Co. v. Ryan
(1935) and Schechter Poultry Corp. v. U.S. (1935), because the elements being regulated were
not, according to the Court, part of commerce. Similarly, the Agricultural Adjustment Act of
1933 was found to regulate agriculture and was, in line with the earlier E.C. Knight case, not
commerce (U.S. v. Butler, 1936); the Bituminous Coal Conservation Act was invalidated in
Carter v. Carter Coal Company (1936) using the same logic. The Court read the commerce
clause and, hence, the extent of national power, as limited to interstate elections of transactions
and placed the power to regulate so-called local activities squarely within the prerogative of the
individual states.
The U.S. Supreme Court's treatment of centralized authority over commerce then
mutated again and redefined central and state competencies. Leaving the earlier restrictive
interpretation behind, the Court broadly enunciated the extent of national government authority,
under the commerce clause from 1937 until the mid-1990s. Beginning with the decision in
National Labor Relations Board v. Jones & Laughlin Steel (1937), the Court for almost sixty
years rarely encountered an assertion of a congressional power to regulate via the commerce
clause that was not constitutional. Though the issue in Jones & Laughlin revolved around
manufacturing, the Court found that Congress was within its authority to regulate it;
manufacturing was no longer an antecedent to commerce, but part of it. Shortly thereafter, the
Court also upheld an application of the commerce clause to establish a minimum wage (U.S. v.
Darby, 1941) and explicitly over-ruled its earlier decision in Hammer v.Daggenhart. By 1942,
the Court was willing to uphold the Agricultural Adjustment Act's application of agricultural
quotas to products that were intended for use on the farmer's own property because "home-
grown wheat in this sense competes with wheat in commerce" (Wickard v. Filburn, 1942).
Congress turned its use of the commerce clause to tackle policies that were only
tangentially commercial, most notably racial discrimination; the Court upheld those applications,
as well. The 1964 Civil Rights Act was deemed a constitutional use of the commerce power
(Heart of Atlanta Hotel v. U.S., 1964) and was held to be appropriately applied to Ollie's
Barbeque that did not market to people traveling in interstate commerce, but bought 46 per cent
of its meat from a local distributer who had purchased it from out of state (Katzenback v.
McClung, 1964). This logic also permitted the Civil Rights Act to reach a resort in a remote
location in Arkansas where some of the food sold, the records on the jukebox and the
paddleboats had been purchased from out of state (Daniel v. Paul, 1969). Using such broad,
judicially sanctioned definitions of interstate commerce, Congress's power to regulate recognized
almost no bounds and was even extended to what state governments could pay their employees
(Garcia v. San Antonio Metropolitan Transit Authority, 1985); earlier, the Court had, by a bare
majority, ruled against that position (National League of Cities v. Usery, 1976), but reversed
itself in Garcia.
The second phase defining center-periphery relations in Europe commenced in 1973 and
ran until 1992. The European Court of Justice was no longer making revolutionary changes in
how member states related to the supranational structure, but rather clarifying, usually to the
benefit of the higher authority, what the relationship would be. A look at how the four freedoms-
-free movement of persons, good, services and capital-- were implemented in this time period
illustrates the trend.
Free movement of goods was central to the founding of each of the treaties, and the Court
acted to limit markedly what member states might do to restrict products from other member
states. In Procureur du Roi v. Benoit and Dassonville (1974) the Court issued sweeping
limitations on what member states could do with regard to imports from fellow member states,
by prohibiting all rules that were "capable of hindering, directly or indirectly, actually or
potentially, intra-Community trade" as equivalent to explicitly banned quantitative restrictions or
measures equivalent to quantitative restrictions." That position was buttressed in the 1979
Cassis de Dijon case (Rewe-Zentral AG v. Bundesmonopolverwaltung fŁr Branntwein) in which
the ECJ declared not only that the the German legislation prescribing alcoholic content of spirits
offered for sale was a trade barrier, but also introduced a new criterion. If a beverage could be
sold in one member state, it could validly be sold in another. Thus, the doctrine of mutual
recognition would, thereafter, guide intra-Community trade.
Free movement of people was rendered less encumbered by national restrictions by the
1975 case of Van Duyn v. Home Office, in which the U.K. refused entrance to a Dutch national
who desired to immigrate to Britain to assume employment with a sect that the British
government did not approve. The Court stated that a member state government has no discretion
in implementing any Community law, and established the principle of direct effect. At the same
time the ECJ allowed that the British government could bar Ms. Van Duyn from entering on
grounds of public policy. The stricture against discrimination against non-nationals was held the
next year to extend to organizations that were not governmental (Dona v. Mantero, 1976), so
long as the reasons were economic in nature.
Free movement of services was bolstered by the ECJ's assertion that even rules that are
not overtly discriminatory can, nonetheless, run foul of the treaty provisions guaranteeing free
movement of services. In Van Binsbergen v. Bestuur Van de Bedrijfsvereniging (1975) the Court
held that a member state cannot impose additional requirements, in this case the requirement of
habitual residence, on a non-national when there are no other special conditions under national
law. Finally, in the area of free movement of capital, the Court in Commission v. Germany
(1987) invalidated a German requirement that non-German insurance companies maintain an
establishment within the country as violating provisions on free movement of capital and
freedom of establishment; simply having an office was sufficient.
Divergent Paths
Weiler sees 1992 and the implementation of the Single Europe Act as heralding the most
recent phase of development in the EU, though much of the activity was focused away from the
ECJ (Weiler, 1999: 63). The U.S. Supreme Court in that same decade assumed a different tact in
defining national and state competencies. Both the ECJ and the U.S. Supreme Court began to
focus on state sovereign immunity. Weiler chose his demarcating year because in February,
1992, the Maastrich Treaty or Treaty of European Union (TEU) was signed; its stated intent was
to move to closer union. The treaty created two new "pillars"or mechanisms for implementing
common policies on foreign and security and on police and judicial cooperation in criminal
matters. Both new pillars were explicitly intergovernmental, as opposed to supranational, and
both were explicitly placed beyond the purview of the ECJ. That was slightly modified to give
the ECJ limited jurisdiction in police and criminal cooperation by the Amsterdam Treaty that
went into effect in 1999.
Negotiations for and the final version of the TEU were read as intentional rebukes of the
Court of Justice and as a clear desire to move further integration back to an intergovernmental
arrangement, without interference by the supranational or central institutions. The ECJ may have
inferred those motives, but was seemingly undeterred as it approached questions of state
sovereign immunity. Indeed, it made a decision in 1993 on state liability that shaved very close to
what remained of national sovereignty. In Francovich and Bonifaci v. Italy (1993) the ECJ held
that if a member state failed to meet its obligations under EU law and an injury was sustained,
the member state could be held liable for compensation. That rule was elaborated in the 1996
joined cases of Brasserie du PÍcheur v. Germany and Regina v. Factortame. Both cases touched
notable national interests; the former involved the German law on purity of beer and the second,
on British fishing regulations. In the joined cases, the Court held that financial compensation
could be sought from a national government if three conditions were met: the law in question
intended to confer rights on individuals, the injury was serious, and a direct causal link existed
between the state's action or inaction and the injury. Actual determination of damages and
awards of reparations were left to national courts. These decisions removed in essence the shield
sovereign immunity from national governmentswhen EU law was involved.
Beginning in 1999, the U.S. Supreme Court was also hearing cases involving sovereign
immunity for American states, but moving in the opposite direction from its counterpart in
Europe. The first decision involving federalism in the United States was that of Chisholm v.
Georgia (1793) and Amendment XI was passed to counter it, preventing national courts from
entertaining law suits against a state. In other words, the amendment guaranteed that a state
cannot be sued without its consent. In the 1999 case of Alden v. Maine the U.S. Supreme Court
held that state employees could not, under Amendment XI, sue their employing states under the
national Fair Labor Standards Act. The Court in 2000 similarly found that the U.S. Age
Discrimination in Employment Act could not be applied to state governments, since Congress
could not abrogate a state's sovereign immunity (Kimel v. Florida, 2000) and the next year that
the Americans with Disabilities Act fell, with reference to state employees, to the same fate
(Alabama v.Garrett, 2001). In short, Amendment XI was erected as a barrier to applying
otherwise valid national legislation to state governments. An exception to that rule was carved
out in 2003, when the Court held that a state employee could sue the state for violating the
Family Leave Act, because Congress did possess the power under Amendment XIV's equal
protection clause to remedy gender discrimination. The equal protection clause, in effect,
trumped state sovereign immunity (Nevada Department of Human Resources v. Hibbs, 2003).
The Supreme Court also began to contract national reach under the commerce clause.
Garcia v. San Antonio Metropolitan Transit Authority (1985) was mentioned earlier as having
extended congressional authority under the commerce clause. Though Garcia has never been
explicitly over-ruled, the Court has limited the the extent of congressional application of the
commerce clause in recent years. In New York v. U.S. (1992) the Low-Level Radioactive Water
Policy Act of 1980 was deemed an infringement on state authority as protected by Amendment
X. The Brady Handgun Violence Prevention Act required state law enforcement agencies to
conduct criminal background checks on people wanting to buy guns, but the Supreme Court held,
in Printz v. U.S. and Mack v. U.S. (1997), that the federal government could not "command" that
state officials to enforce a national regulatory mechanism. Notably, use of state law enforcement
officers to conduct background checks was only an interim measure until a national system was
operational, and the advent of a national system almost coincided with Court's decision in 1997.
The Violence Against Women Act of 1994 was passed by Congress under its commerce
authority, but the U.S. Supreme Court held in U.S. v. Morrison; Brzonkala v. Morrison (2000)
that Congress exceeded its commerce power when it provided a civil remedy for enforcement of
the law. That same year, the Court upheld congressional use of the commerce power to restrict
states' ability to disclose a person's personal information from drivers license applications
without the person's consent (Reno v. Condon, 2000). All of these cases were decided by very
narrow majorities, and a change of judicial personnel could easily alter the trajectory that they
have set. Even so, the U.S. Supreme Court has within the last decade charted a course opposite
to that of the ECJ, by rejecting attempts by central government authorities to infringe state
sovereign immunity and to use the commerce clause too expansively.
Judicial Decision Making
To understand what all of this says about the nature of federalism in the U.S. and the EU
and where each many be going, the nature of how and why judges made the decisions they did
seems central. That can best be approached by returning to Gibson's three-pronged explanation
for how judges decide cases: judicial preferences, legal policy constraints and external limitations
(1983: 9). Judicial preferences usually connote ideological, political or policy predispositions
that will color how a judge will view the law to be interpreted or applied. These values or goals
are usually relatively consistent over time for each judge (Segal and Spaeth, 1993). During the
foundational period on both sides of the Atlantic, the judges were motivated, it is generally
agreed, by specific goals. Both sets of judges were federalists and, in the case of the United
States, Federalist partisans. The Marshall Court (1801-1836) defined the foundational era and
consciously intended to create "an effective national government endowed with vital substantive
powers" (Schwartz, 1993: 45). The judges on the ECJ were driven by market-building (Weiner,
2000: 320). Moreover, during their foundational periods, both courts were largely
unencumbered by prior decisions and jurisprudence that might have limited their work; both
were quite clearly writing on blank slates and painting the first judicial blushes on constitutional
and treaty provisions.
The feasibility of judicial efforts is determined by the goals of other institutions and the
extent to which they are harmonious or antagonistic. During the foundational era in the U.S., the
Federalist Party held the Court as its last vestige of national authority, surrounded by hostile
Jeffersonians. The Jeffersonians espoused limited government, antithetical to the nationalizing
goals of the Supreme court. Their displeasure with the direction of the Court led to the
impeachment of Justice Samuel Chase, which was clearly intended as a threat to the Court as a
whole (Schwartz, 1993: 57-8). The ECJ found, on the other hand, itself surrounded during its
foundational period with institutions sharing its goals. Both the Commission and the Council
joined the Court in its drive to build a market. That permitted a concerted top-down
constitutionalism (Shaw, 2000: 301). The U.S. Supreme Court and the European Court of
Justice both also benefitted from a political environment that embraced a respect for the rule or
law and accepted that courts were cloaked in its mantle of legitimacy (McCloskey, 1960 :11).
Only rogue criticisms were lodged again the ECJ (e.g., Colin, 1966; Rasmussen, 1986). The
darts flung at the U.S. Court were so clearly partisan as to be discounted.
The era of mutation of competencies was, for the ECJ, an easier time. The Court was
primarily putting muscle on a skeletal architecture that was already in place. European
integration was, as a whole, largely stagnant during these years (Weiler, 1999: 39). The Court
encountered little resistence from other European institutions and was gaining support at the
national level from domestic judges (Alter, 1997).
The U.S. Supreme Court was driven, from 1895 to 1936, by a belief in the gospel of
Adam Smith (Schwartz, 1993: 179) and was alternately in step or out of sync with the other
political institutions. That commitment eroded, as is evident in the narrow votes within the
Court itself, and the Great Depression argued that it was a failed ideology. The second election
of F.D. Roosevelt and the bold presidential court-packing plan made clear that the Court was an
institution antagonistic to all other political sectors. The Court capitulated. Sitting Justice
Robert Jackson saw the "Court as poised between two worlds," and " the older world of laissez
faire was recognized everywhere outside the court as dead" (Jackson, 1941: 85).
The two courts diverge, though, in the third cycle of their development of federalism.
The ECJ was rebuked, if only mildly, by provisions of the Maastrich Treaty that explicitly denied
the Court a hand in new initiatives. Before concluding, however, that the ECJ was clinging to an
isolated position when it encroached on national sovereignty and asserted that member states
could be held financially liable for violations of EU law, another feature of the Maastrich treaty
should be noted. Because of repeated difficulties in gaining member state compliance, the
Commission was given the option to impose penalties when states refused to comply with
decisions of the ECJ. The Commission first used this option in 1997, when it sought a financial
penalty against a member nation sanctioned by the ECJ (Azzi, 2000: 64). The Court was,
perhaps, acting in concert with the EU executive in assuring that supranational laws were not
flaunted by recalcitrant states. At the very least, the two sought the same goal.
Ideology is the most obvious explanation for the U.S. Supreme Court's shift on some
extensions of the commerce clause and on its position on state sovereign immunity. Chief
Justice William Rehnquist has long championed states' rights, but won only once, in the 1976
National League of Cities v. Usery that was subsequently overturned. His position gained
support on the bench with the arrival of the first conservative majority since 1936. That majority
reflects the conservative movement in the U.S. prior to the 1992 election, and it has made a
"definite changes in direction" in several lines of jurisprudence. All tilt to the right (Schwartz,
1993: 372). There has been no tension between the Court and other institutions as a result of the
federalism decisions, largely because lawmakers, politicians and the public are not particularly
interested in the subject. Federalism struck a chord in the U.S. during the drive for racial
integration in the 1950s and 1960s, but no longer garners votes or exacts tolls.
State sovereignty is still a political theme in Europe, but it is becoming progressively
more muted as nations of the EU become more closely connected, particularly with the advent of
the Euro in twelve nations. It may, as it has in the U.S., lose most of its resonance. It remains a
concern in allocating legal competencies and assessing obligations and responsibilities and may
emerge as more controversial with the addition of the new member states from central Europe
and the ratification of the EU Constitutional Treaty. Courts have had and will continue to wield
a heavy hand in crafting the shapes that federalism or supranationalism have assumed, and a
large measure of that jurisprudence is codified in the EU Constitutional Treaty.
What, though, has determined the directions of the courts? Preferences or ideologies
have been determinative in three eras in the U.S., but a reaction followed the foundational period,
the 1895-1936 free market bent and, most recently, the very central government friendly
interpretation of the commerce clause. The reactions to the first and the last came through
changes in Court personnel; the 1937 shift was in response to a number of external political
pressures. None can be attributed to strictly legal concerns.
On the European side of the equation, the direction of the Court has not altered
significantly. Once the foundational period constitutionalized the treaties and began a
centralizing course, that trajectory has been generally maintained. The intensity of the pace has
varied, however, over time. Since judicial votes are not recorded on the ECJ, attributing values
or ideology at the individual judge level is impossible. At the level of the Court, however,
market building and integration seem to be the overlying templates across three eras. That has
been possible because of the consistent complicity of the Commission, the Council and member
state judges.
The history of the U.S. Supreme Court and national-state relations extends over two
centuries. Contractions and expansions could be anticipated as so much in the political and
economic world have changed. The EU has been propelled by centripetal force, toward a more
integrated, federal Europe. As economies and politics change and as the fifteen become 25, the
ECJ may also find its jurisprudence will be pulled by in the opposite direction by centrifugal
forces. The values of the judges, the positions of the other institutions, and the parameters of the
law defined by earlier decisions will forge that future. The key to a working federal system, as
James Madison explained two centuries ago, is achieving and maintaining an equilibrium.
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TABLE OF CASES
U.S. Supreme Court
Alabama v. Garrett, 521 U.S. 356 (2001).
Alden v. Maine, 515 S.Ct. 2240 (1999).
Brooks v. U.S., 267 U.S. 432 (1925).
Carter v. Carter Coal Company, 298 U.S. 238 (1936).
Champion v. Ames, 188 U.S. 321 (1903).
Chisholm v. Georgia, 2 Dall. 419 (1793).
Daniel v. Paul, 395 U.S. 298 (1969).
E.C. Knight v. U.S., 156 U.S. 1 (1895).
Gibbons v. Ogden, 9 Wheat. 1 (1824).
Hammer v. Daggenhart, 247 U.S. 251 (1918).
Heart of Atlanta Hotel v. U.S., 379 U.S. 241 (1964).
Hippolite Egg Co. V. U.S., 220 U.S. 45 (1911).
Hoke v. U.S., 227 U.S. 308 (1913).
Katzenbach v. McClung, 379 U.S. 294 (1964).
Kimel v. Florida, 528 U.S. 62 (2000).
McCulloch v. Maryland, 4 Wheat. 316 (1819).
Marbury v. Madison, 1 Cr. 137 (1803).
National Labor Relations Board v. Jones and Laughlin Steel, 301 U.S. (1937).
National League of Cities v. Usery, 426 U.S. 833 (1976).
Nevada department of Human Resources v. Hibbs, et al, 538 U.S. _____(2003).
New York v. U.S., 505 U.S. 144 (1992).
Panama Refining Company v. Ryan, 293 U.S. 388 (1935).
Printz v. U.S. and Mack v. U.S., 117 S.Ct. 2365 (1997).
Reno v. Condon, 528 U.S. 141 (2000).
Schechter Poultry Corp. v. U.S., 295 U.S. 495 (1935).
Standard Oil v. U.S.,
U.S. v. American Tobacco,
U.S. v. Butler, 297 U.S. 1 (1936).
U.S. v. Darby, 312 U.S. 100 (1941).
U.S. v. Morrison; Brzonkala v. Morrison, 529 U.S. 598 (2000).
Wickard v. Filburn, 317 U.S. 111 (1942).
European Court of Justice
Commission v. Council (ERTA), (Case 22/70) ECR 263 [1071].
Commission v. Germany (Case C-131) ECR 5427 [1990].
Brasserie v. Pecheur . V. Germany and R. v. Factortame (Cases C-46 and 48/93) ECR I-1029
[1996].
Costa v. E.N.E.L. (Case 6/64) ECR 585 [1964].
Dona v. Montero (Case 13/76) ECR 1333 [1976].
Francovich v. Italy (Case C-6 and 9/90), ECR I-5357 [1991].
Procureur du Roi v. Benoit and Dassonville, (Case 8/1974) ECR 837 [1974].
Rewe-Zentral AG v. Bundesmonopolverwaltung (Case 120/78) ECR 649 [1979].
Simmenthal SpA v. Commission, (Case 92/780) ECR 777 [1980].
Van Binsbergen v. Bestuur van de Bedrijfsvereniging voor Mettalnijverheid (Case 33/74) ECR
1299 [1974].
Van Duyn v. Home Office (Case 41/74) ECR 1337 [1975].
Van Gend en Loos v. Nederlandse Administratie der Belastingen (Case 26/62) ECR 1 [1963].
27